Innogy has signed a power purchase agreement with Audax Renovables for the supply of clean electricity from the 50MW Alarcos solar plant.
The long-term contract will run for 10 years, starting in the first half of 2020 when Innogy’s Alarcos photovoltaic plant will be fully operational.
Alarcos is under construction south of the city of Ciudad Real in the autonomous community Castilla-La Mancha.
Innogy’s subsidiary Belectric is responsible for the entire construction and will also take on operation and maintenance of the solar farm as a service provider.
The agreement will support Audax’s efforts to supply its Spanish customers with 100% green power, which is certified as green through the issuance of Guarantees of Origin.
Innogy chief financial officer for renewables Holger Himmel said: “With this deal, we are demonstrating how climate protection is possible under market conditions.
“The PPA enables us to operate our Alarcos solar farm without any state subsidies. This underlines that solar energy is already competitive.
“Decreasing prices for equipment will further drive this development. Additionally, this PPA allows Audax to supply its customers in Spain in a climate-friendly manner.”
Audax Renovables president Jose Elias added: “This agreement is in line with our strategic objectives of obtaining the most profitable and cleanest energy through long-term PPA contracts to drive our growth. The PPA with Innogy will allow us to consolidate our position as the first independent energy supplier for the SME segment in Spain.”